Do I Need Renter’s Insurance If I Live With My Parents?

Nearly half of all American college graduates return to live at home after graduation. With the rising costs of living expenses and limited job opportunities, it is becoming more common for adult children to live at home. Although you may be living at home, it has a different feel to it than it did when you were a teenager – it may almost feel as if you are renting space from your parents. When you move back home, you also bring back all of your clothes, furniture and other belongings back with you. Belongings that you should consider protecting against damage and the cost of replacement in the event something should happen.

Coverage Under Homeowner’s Insurance or Renters Insurance?

If your parents are homeowners, it is likely that they have a homeowner’s insurance policy; or if they rent, they likely have their own renter’s insurance policy. To protect your personal belongings, you will need to see if you can piggyback on your parent’s policy or if you will be required to purchase your own policy.

Making this decision can be depend on the answer to the following questions, and of course, what your parent’s insurance carrier will allow:

How long do you plan to be living at home?

Will your parent’s homeowner’s insurance extend coverage to your belongings if you stay at home for 6 months or less?

Do you have to pay rent in order to qualify for renter’s insurance?

How much will your parent’s insurance premium go up if they include your belongings on their policy?

Will your parent’s homeowner’s insurance policy cover the belongings of a renter?

Typically, homeowner’s and renter’s insurance will cover the property of all permanent dwellers in the home. If you will be living at home for an extended period of time, you can consider yourself to be a permanent dweller. You parents may need to increase their coverage level in order to include your belongings. If this is the case, you can help with the rising costs by offering to pay for the additional coverage or opt to get your own renter’s insurance policy. In some cases, you parents may have enough coverage for your things, or you did not come home with enough to justify raising the coverage level.

Moving back home doesn’t have to feel like a step back – especially when you choose to make adult decisions about insurance coverage.